Odaily Planet Daily report: The market capitalization of Tether’s stablecoin USDT declined by 0.8% this month to $183.61 billion, continuing a roughly 1% decline seen in January, marking the first two consecutive months of contraction since the Terra event in 2022.
Analysis indicates that stablecoins are regarded as a key source of liquidity in the crypto market, and changes in their scale are often seen as indicators of capital inflows and outflows. The sustained decline in USDT's market capitalization may reflect capital outflows, exerting some pressure on the ongoing rebound of Bitcoin and the broader market.
Data shows that after Bitcoin's price stabilized near $60,000 in early February, it rebounded above $70,000 before recently pulling back to around $65,000. Meanwhile, USDC’s market capitalization has recovered from its year-to-date low but remains largely flat for the year. (CoinDesk)